Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage in the investment analysis [4][8]. Core Insights - The company is a leading urban rail transit engineering consulting firm backed by the Guangzhou Metro Group, focusing on Guangdong while expanding nationally. Its stable operations are expected to drive continuous growth [4][10]. - The urban rail transit industry is experiencing steady growth, with new economic policies in Guangdong injecting new momentum into development [10][36]. - The company has a strong competitive edge due to its comprehensive engineering design qualifications and a robust incentive mechanism, alongside a commitment to research and development [10][46]. Summary by Sections Company Overview - The company, established in 1993, has evolved into a leading urban rail transit engineering consulting firm in China. It has shown steady growth in revenue and net profit, with plans to enhance its consulting capabilities through acquisitions [15][21]. - From 2016 to 2024, the company's revenue grew from 1.11 billion to 2.75 billion yuan, with a compound annual growth rate (CAGR) of 12%. Net profit increased from 0.14 billion to 0.49 billion yuan, with a CAGR of 16.7% [21][22]. Industry Growth - The urban rail transit industry has seen a CAGR of 12.58% from 2019 to 2024, with non-first-tier cities becoming new growth points. The total operational mileage of urban rail transit in China is expected to reach 12,168.8 kilometers by 2024 [36][39]. - Guangdong province is leading in urban rail transit development, with significant investments and a strong fiscal position supporting infrastructure projects [39][40]. Company Advantages - The company possesses a comprehensive Class A engineering design qualification, which is held by only 92 firms nationwide, establishing a significant competitive barrier [10][46]. - The company has a diversified incentive mechanism and a strong focus on R&D, with a record number of patents filed in 2024 [10][46]. - The company has a solid dividend policy, with a cumulative dividend of 1 billion yuan from 2020 to 2024, reflecting a commitment to shareholder returns [10][46]. Financial Analysis - The company is projected to achieve net profits of 5.41 billion, 5.99 billion, and 6.64 billion yuan from 2025 to 2027, with growth rates of 10.04%, 10.58%, and 10.96% respectively [8][9]. - The revenue from the core surveying and design business is expected to grow at rates of 8.00%, 9.00%, and 10.00% from 2025 to 2027 [9][10].

Group 1: Overall Business Performance - In 2024, the company focused on strategic goals, accelerating development and achieving steady growth in operating performance, with increased revenue and net profit [1] Group 2: Business Segmentation - The revenue ratio of domestic to foreign business fluctuates due to national policies and project progress, with domestic business generally higher than foreign business in recent years [1] - The demand for intercity rail construction in the Guangdong-Hong Kong-Macao Greater Bay Area continues to rise, while the intensity of rail transit construction in some foreign cities has decreased [2] Group 3: Low-altitude Economy Development - The company emphasizes the expansion of low-altitude economy business, collaborating with partners to develop infrastructure plans and signing strategic cooperation agreements [2] - Projects related to low-altitude flight testing and application research are underway, aiming for high-quality integration of low-altitude economy and rail transit [2] Group 4: Mergers and Acquisitions - The company plans to acquire 100% equity of Guangzhou Metro Engineering Consulting Company through a share issuance, aiming to enhance its core competitiveness and integrate engineering consulting services [3] - Related auditing and evaluation work for this transaction is still ongoing, with further details to be announced [3] Group 5: Overseas Market Expansion - The company has established an overseas division to manage and expand its international business, focusing on markets in Vietnam and Singapore, with successful projects in Hong Kong and Macau [4] - In 2024, the company secured its first design project for the Hong Kong MTR low and high voltage renovation [4] Group 6: Capital Operations Planning - The company aims to enhance capital empowerment and optimize its equity structure to support stable market value growth and improve the quality of the listed company [5]

Overview - The subway design market in China is experiencing a rapid decline in demand due to a slowdown in urban expansion, with fixed asset investment in urban rail transit dropping to 544.81 billion yuan in 2023, a year-on-year decrease of 9.78% [1][7] - The demand for subway design services has also shrunk, with the market size falling to 12.979 billion yuan in 2023, a decrease of 1.79% year-on-year [1][7] Market Policies - The Chinese government has issued several policies to support urban rail transit construction, including guidelines for comprehensive transportation systems and actions to enhance signal systems, which create a favorable environment for the subway design industry [3][4] Industry Chain - The subway design industry relies on upstream sectors such as hardware and software, while downstream activities include subway construction and operation, where design firms provide technical services and quality supervision [5] Current Development - As of the end of 2023, there are 338 operational urban rail transit lines across 59 cities in mainland China, with a total length of 11,224.54 kilometers, of which subway lines account for 8,543.11 kilometers, representing a year-on-year growth of 6.7% [6] Competitive Landscape - The subway design industry is primarily government-led, with state-owned enterprises dominating project contracts. Major players include Beijing Urban Construction Design Group, China Railway Design Corporation, and Shanghai Tunnel Engineering Research Institute, which collectively secure over 90% of the market share [8][9] Representative Companies - Beijing Urban Construction Design Group reported a total revenue of 4.18 billion yuan in the first half of 2024, with a gross profit of 822 million yuan and a gross margin of 19.67% [9] - Guangzhou Metro Design Institute, a subsidiary of Guangzhou Metro Group, achieved a revenue of 1.251 billion yuan in the first half of 2024, with 85.53% of this from surveying and design services [10] Future Trends - The subway design industry is expected to integrate more with urban planning and municipal engineering, participating in multi-functional projects that combine transportation hubs with commercial and residential spaces. Additionally, the Belt and Road Initiative may open opportunities for Chinese subway design firms to engage in international projects [11]

Investment Rating - The report assigns a "Buy-A" rating to the company, maintaining this rating with a 6-month target price of 20 CNY [5]. Core Insights - The company achieved a revenue of 2.748 billion CNY in 2024, representing a year-over-year increase of 6.79%, with a net profit of 492 million CNY, up 13.91% year-over-year [2][3]. - The company's core business in surveying and design saw a revenue increase of 5.57%, while the engineering general contracting business surged by 75.25%, increasing its revenue share to 9.26% [2]. - The company has demonstrated strong operational resilience, with consistent year-over-year revenue and profit growth since 2017, even amidst industry cycles [2][4]. Financial Performance - The gross profit margin for 2024 was 38.40%, an increase of 1.17 percentage points year-over-year, driven by the opening of major projects and cost control measures [3]. - The net profit margin for the year was 18.23%, reflecting a year-over-year increase of 1.15 percentage points, with a return on equity (ROE) of 19.25% [3]. - The operating cash flow significantly improved, with a net inflow of 567 million CNY in Q4 2024, compared to a net outflow of 530 million CNY in the previous three quarters [3]. Business Strategy and Growth Prospects - The company is a leading player in urban rail transit design in A-shares, with high barriers to entry and strong competitive advantages [4]. - The company is actively expanding into new business areas, including energy-saving renovations and non-rail projects, while also pursuing international opportunities [8]. - Future revenue projections estimate growth to 3.008 billion CNY in 2025, 3.266 billion CNY in 2026, and 3.519 billion CNY in 2027, with corresponding net profits of 543 million CNY, 598 million CNY, and 652 million CNY [9][10].

Group 1 - Guangzhou Metro Design Research Institute Co., Ltd. applied for a patent titled "A Subway Station" with publication number CN 119754337 A, filed on February 2025 [1] - The patent involves urban rail transit structural engineering technology, featuring a subway station design that includes a platform, a hall, and a triangular support structure to enhance stability and safety [1] - The triangular support structure is designed to evenly distribute pressure on the hall, reducing stress concentration compared to traditional multi-column structures, thereby improving structural stability and comfort [1] Group 2 - Guangzhou Metro Design Research Institute Co., Ltd. was established in 1993 and is based in Guangzhou, primarily engaged in professional technical services [2] - The company has a registered capital of 400.01 million RMB and a paid-in capital of 360 million RMB [2] - The company has invested in 17 enterprises, participated in 5,000 bidding projects, and holds 1,673 patents along with 20 trademark registrations [2]

Financial Performance - In 2024, the company achieved an operating revenue of CNY 2.748 billion, a year-on-year increase of 6.79% [1] - The total profit reached CNY 571 million, reflecting a growth of 13.93% compared to the previous year [1] - Net profit surpassed CNY 500 million for the first time, marking a 14.02% increase year-on-year [1] Revenue Growth Factors - Revenue fluctuations are influenced by the long project cycles and large contract amounts in the rail transit business [2] - The increase in revenue during Q4 2024 was attributed to the opening of several major lines and reaching revenue recognition milestones for various projects [2] Gross Margin Improvement - The overall gross margin improved due to the completion of major projects and reaching revenue recognition points [3] - Cost control measures and efficiency improvements contributed to the growth in gross margin [3] Business Development Initiatives - The company is actively expanding its energy-saving renovation business, which is a key area in the "dual carbon" initiative [4] - Successful pilot applications of proprietary energy-efficient air conditioning technology have been implemented in various metro projects [4] Low-altitude Economy Strategy - The company is focusing on the development of low-altitude economy projects, collaborating with partners to create integrated infrastructure solutions [6] - Strategic agreements have been signed to explore the integration of rail transit and low-altitude economic activities [6] Mergers and Acquisitions - The company plans to acquire 100% equity of Guangzhou Metro Engineering Consulting Company to enhance its engineering consulting capabilities [6] - Ongoing audits and evaluations are in progress for this acquisition, with further details to be announced [6] Dividend Policy - For 2024, the cash dividend plan is set at CNY 4.80 per 10 shares, totaling CNY 196 million distributed to shareholders [6] - The company aims to maintain a stable dividend policy, reflecting its commitment to shareholder returns [6]

Core Viewpoint - Guangzhou Metro Design Institute Co., Ltd. reported a steady growth in revenue and profit for 2024, driven by its leading position in the urban rail transit engineering consulting industry and favorable national policies [1][2]. Financial Performance - The company achieved an annual operating revenue of 2.748 billion yuan, representing a year-on-year increase of 6.79% [1]. - The net profit attributable to shareholders reached 492 million yuan, with a year-on-year growth of 13.91% [1]. - The weighted average return on net assets was 19.25%, and the basic earnings per share stood at 1.23 yuan [1]. - A cash dividend of 4.80 yuan per 10 shares is proposed for all shareholders [1]. Industry Position and Growth Opportunities - As the first A-share listed company focused on urban rail transit engineering consulting, the company continues to strengthen its industry leadership amid policy and market opportunities [2]. - The "Transportation Power" strategy and new urbanization initiatives are expected to create diverse growth opportunities for the company [2]. - The company successfully ensured the high-quality opening of 9 major lines, achieving a historical high, and is engaged in design tasks for 30 total package and design contracts across 50 cities [2]. Technological Innovation and Competitive Advantage - The company possesses extensive qualifications and professional experience, having completed over 100 rail transit design and consulting projects [3]. - It leads in key technologies such as network planning, passenger flow simulation, BIM design, green energy efficiency, prefabricated construction, and smart metro systems [3]. - The company collaborates with domestic and international research institutions to drive technological innovation and product development [3]. Future Strategic Planning - The company plans to incorporate low-altitude economy and large-scale equipment renovation into its strategic development goals [4]. - It aims to deepen its business layout with a focus on "1 core, 3 developments, 2 cultivations, and N concerns" [4]. - Five strategic initiatives are outlined to ensure the achievement of its goals, including new business growth, digital transformation, regional management upgrades, market capability enhancement, and research innovation breakthroughs [4].

| 审计报告 | 1-5 | | --- | --- | | 合并资产负债表 | 1 | | 合并利润表 | 2 | | 合并现金流量表 | 3 | | 合并所有者权益变动表 | 4-5 | | 母公司资产负债表 | 6 | | 母公司利润表 | 7 | | 母公司现金流量表 | 8 | | 母公司所有者权益变动表 | 9-10 | 审 计 报 告 司农审字[2025]24007730577 号 广州地铁设计研究院股份有限公司全体股东: 一、审计意见 我们审计了广州地铁设计研究院股份有限公司（以下简称"地铁设计公司"） 财务报表，包括 2024 年 12 月 31 日的合并及母公司资产负债表，2024 年度的合并 及母公司利润表、合并及母公司现金流量表、合并及母公司所有者权益变动表以及 相关财务报表附注。 我们认为，后附的财务报表在所有重大方面按照企业会计准则的规定编制，公 允反映了地铁设计公司 2024 年 12 月 31 日的合并及母公司财务状况以及 2024 年度 的合并及母公司经营成果和现金流量。 二、形成审计意见的基础 我们按照中国注册会计师审计准则的规定执行了审计工作。审计报告的"注册 会计师对财 ...

广州地铁设计研究院股份有限公司 内部控制审计报告 司农审字[2025]24007730537号 目 录 报告正文……………………………………………………1-2 内部控制审计报告 司农审字[2025]24007730537号 广州地铁设计研究院股份有限公司全体股东： 按照《企业内部控制审计指引》及中国注册会计师执业准则的相关要求，我们 审计了广州地铁设计研究院股份有限公司（以下简称"地铁设计公司"）2024年12 月31日的财务报告内部控制的有效性。 一、企业对内部控制的责任 二、注册会计师的责任 我们的责任是在实施审计工作的基础上，对财务报告内部控制的有效性发表审 计意见，并对注意到的非财务报告内部控制的重大缺陷进行披露。 三、内部控制的固有局限性 内部控制具有固有局限性，存在不能防止和发现错报的可能性。此外，由于情 况的变化可能导致内部控制变得不恰当，或对控制政策和程序遵循的程度降低，根 据内部控制审计结果推测未来内部控制的有效性具有一定风险。 四、财务报告内部控制审计意见 我们认为，地铁设计公司于2024年12月31日按照《企业内部控制基本规范》和 相关规定在所有重大方面保持了有效的财务报告内部控制。 1 ...

广州地铁设计研究院股份有限公司 关于非经营性资金占用及其他关联方 资金往来情况的专项审核说明 司农专字[2025]24007730523 号 目 录 报告正文................................................................................ 1-2 附件一： 广州地铁设计研究院股份有限公司 2024 年度非经营性 资金占用及其他关联资金往来情况汇总表........................ 3-4 我们对汇总表所载信息与本所审计地铁设计公司 2024 年度财务报表时所复核 的会计资料和经审计的财务报表的相关内容进行了核对，在所有重大方面没有发 现不一致。除了对地铁设计公司实施 2024 年度财务报表审计中所执行的对关联方 交易有关的审计程序外，我们并未对汇总表所载资料执行额外的审计程序。为了 更好地理解地铁设计公司的非经营性资金占用及其他关联资金往来情况，后附汇 总表应当与已审计的财务报表一并阅读。 本专项说明仅供地铁设计公司年度报告披露之目的使用，不得用作任何其他 目的。 附件：广州地铁设计研究院股份有限公司 2024 年 ...